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Full text of "Shipping Practice"

5$                                 SHIPPING PRACTICE

In the case of damaged cargo, the shipowner is entitled
to full freight provided he delivers the cargo; if, however,
the goods are lost in transit no freight is earned.

In addition to the foregoing there are several other types
of freight; these are—

Dead freight. Payment for space booked but not used.
When by contract or charter-party space is booked for a
definite quantity, and shippers fail to provide cargo, or do not
provide the full amount agreed, then the owner is entitled
to claim dead freight for unoccupied space.

The shipowner, however, is not entitled to place himself
in a better financial position by receiving dead freight in
excess of the actual freight he would have earned by the
carriage of the goods. Dead freight is therefore calculated
by the amount of cargo which should have been carried, but
which in fact was not, at the agreed rate of freight, less all
charges which would have been incurred by the owner in the
carriage of the goods, i.e. loading and discharging expenses.

Dead freight is rarely demanded in cases where a shipper
books space for a few cases in a berth shipment and fails to
supply them.

Back freight. Freight charged for the return of goods
which have not been accepted at port of delivery. Should
a shipper forward goods to a consignee who refuses to take
delivery, the owner may either exercise his Hen—if freight
has not been paid—and sell the goods, or return them to the
shipper. The shipper is then charged with an additional
amount of freight for their return, which is known as back
freight.

Another form of back freight is when goods have been
overstowed or overcarried, through a wrong mark appear-
ing on the case. For example, goods intended for Monte
Video, and port-marked "Buenos Aires" would not be acces-
sible at Monte Video, and would, therefore, have to be
overcarried to Buenos Aires. There again back freight
would be chargeable for the return of the goods from
Buenos Aires to Monte Video, and if wrongly marked
would be chargeable to the shipper.